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GAS MEASUREMENT COMMITTEE (REPORT NO.

4A)

REPORT ON

NATURAL GAS CONTRACT

MEASUREMENT AND QUALITY CLAUSES

FIRST PRINTING AUGUST, 1971

SECOND PRINTING JUNE, 1977

Prepared By:

_THE TASK GROUP ON

GAS CONTRACTS

Pat H. Miller, Chairman Bruce J. Caldwell Robert B. Fleske Albert H. Reschke

© 1971, AMERICAN GAS ASSOCIATION

AMERICAN GAS ASSOCIATION 1515 Wilson Boulevard

A rHngton, Virginia 22209

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THE MEASUREMENT COMMITTEE OF THE AMERICAN GAS ASSOCIATION

1971 - 1972 COMMITTEE YEAR

MEMBERS

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L. J. Kemp, Chairman

Southern Caltfornia Gas Company Los Angeles, California 90054

T. E. Jacobs

Tennessee' Gas Pipeline Company Houston, Texas 77001

W. R. Kane, First Vice-Chairman Algonquin Gas Transmission Company Boston, Massachusetts 02135

H. C. Judd

Northwest Natural Gas Company Portland, Oregon 97209

Ken C. Yost, Second Vice-Chairman Consolidated Gas Supply Corporation Clarksburg, West Virginia 26302

G. G. Less

Natural Gas Pipeline Co. of America Chicago, illinois 60603

E. J. Burgin, Past Chairman Florida Gas Transmission Company Winter Park, Florida 32789

Douglas McKean

Northern illinois Gas Company Aurora, Illinois 60507

Harry P. Bean

El Paso Natural Gas Company El Paso, Texas 79999

R. E. Mi1ler

Columbia Gas System Service Corporation Columbus, Ohio 43212

T. N. Befus

Alberta Gas Trunk Line Co., Ltd. Calgary, Alberta, Canada

w. M. Moore

United Gas Pipeline Co. Shreveport. Louisiana 71101

.. . "q_~ ..... :r,. ...... c::.~.~,~y'" .... , .... " .... " .. , '_",_'''' , .... ,_ Pacific Gas & Electric Co.

San F'rancf so, California 94106

E. A. Poyhonen

,- ,.. . .. "" .. '.'.".,' ··'Oklahoma 'Na"tural ·Gas··Co,mpan~/· ,

Tulsa, Oklahoma 74102

C. J. Coulter

Cities Service Gas Company Oklahoma City, Oklahoma 73101

H. P. Pringle

Pan Am Petroleum Corporation Houston, Texas 77001

T. A. Davis

San Diego Gas & Electric Co. San Diego, California 92113

Russ Sarrine

Consumers Power Company Jackson. Michigan 49201

J. H. Day

Texas Eastern Transmission Corporation Shreveport, Louisiana 71102

R. L. Vance

Transwestern Pipeline Company Shreveport, Louisiana 71102

R. G. Graves

Transcontinental Gas Pipe Line Corp. Houston. Texas 77001

H. C. Vlasek

Pacific Lighting Service

Los Angeles, California 90017

T. L. Hillburn

Phillips Petroleum Company Bartlesville, Oklahoma 74001

E. R. Volpe

Public Service Electric & Gas Company Newark, New Jersey 07101

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MANUFACTURER ADVISORS

B. M. Anderson

Air Products & Chemicals, Inc. Allentown, Pennsylvania 18105

E. F. Blanchard UGC Industries

Shreveport, Louisiana 71102

J. A. Bonner

Rockwell Manufacturing Co. Pittsburgh, Pennsylvania 15208

J. F. Buresh

Fisher Controls Company Marshalltown, Iowa 50158

B. J. Caldwell

Texas Instruments Engineers, Inc. Houston, Texas 77001

W. K. Clark

Dresser Measurement Houston, Texas 77001

D. L. Close

Union Carbide Corporation Tonawanda, New York 14152

G. M. Crabtree

American Meter Company Philadelphia, Pennsylvania 19116

R. B. Crawford

American Meter Company Philadelphia, Pennsylvania 19116

L. P. Emerson

The Foxboro Company Foxboro, Massachusetts 02035

H. J. Evans

Rockwell Manufacturing Company Pittsburgh, Pennsylvania 15208

G. W. Schneider

American Meter Company Philadelphia, Pennsylvania 19116

H. R. Schroyer

American Meter Company Philadelphia, Pennsylvania 19116

E. L. Upp

Danial Industries, Inc. Houston, Texas 77024

TECHNICAL ASSOCIATES

H. S. Bean

P. O. Box 1213 Sedona, Arizona 86336

S.. R. Beitler

American Society of Mechanical Engineers New York, New York 10017

E. E. Buxton

Union Carbide Corporation

South Charleston, West-Virginia 25303

Rodger Dowdell

University of Rhode Island Kingston, Rhode Island 02881

D. B. Mann

National Bureau of Standards Boulder, Colorado 80302

John Newcombe

W. H. Osborne

Champlin Petroleum Co. Fort Worth, Texas 76107

Mason P. Wilson. Jr. University of Rhode Island Kingston, Rhode Island 02881

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A.G.A. MEASUREMENT COMMITTEE

INDEX

Subject Page

INTRODUCTION ...•.•...••.....•.•..••...•.......•...... 1

GAS MEASUREMENT UNITS .••.•.•....•.•..•.•............. 5

Volumetric Measurement ....••.................. 5

Energy Measurement ..•.....................•........ 6

Weight Measurement ........•..•..................... 8

QUALITY OF GAS - DISCUSSION ..••...•.•..•.......•.......• 9

FORM OF CONTRACT MEASUREMENT CLAUSE , 14

FORM OF CONTRACT QUALITY CLAUSE 19

NOTES •.•.•••...........•..........•..... _ _. _ 22

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A.G.A MEASUREMENT COMMITTEE REPORT ON GAS CONTRACTS

INTRODUCTION

Along with the Measurement Committee's continuous study of developments concerning methods and procedures applicable to the measurement of natural gas, the resultant effects

on the requirements of the gas contract are closely watched. This is the initiation of our pub-

lished reporting on gas contracts and, as with the other technical reports of this committee,

the plan is to revise this report as found necessary to keep the industry adequately informed

on the subject.

This report is offered for information purposes only and is not represented as a stan-

dard. The information herein is given with the thought that the attainment of the greatest

possible accuracy and agreement between contracting parties might be achieved through uni-

•. . __ ,"._ .. ~ _, ..•.. _ •. ; " •... _ _,_. ~_. ·c __ '_" .. ".-' ,r '--- .~ .. '",

form practices. It is hoped that the report may (1) encourage universal endeavor for practical

accuracy of gas measurement within established commercial tolerances, rather than for

impractical theoretical solutions or advantageous positions; (2) encourage adoption of the

American National Standard base conditions for gas measurement units; (3) encourage will-

ingness to follow the industry in its adoption of changes for the purpose of improving accuracy

and providing more uniform results; (4) encourage uniformity in contract measurement and

gas quality clause wording; (5) encourage reliance upon the ability of the measurement people

of the xespective gas companies to obtain the highest possible accuracy through the use of

applicable A.G.A. Measurement Committee publications; (6) encourage the attainment of

brevity in the gas contract measurement clause through the use of references to A.G.A. Mea-

surement Committee publications.

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The A.G,A. Gas Measurement Committee maintains continuous liaison with others in-

volved in researching gas measurement techniques throughout the world. It also sponsors

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within the structure of A.G.A. such gas measurement research undertakings as appear to be

necessary for the purpose of clearing up any questions concerning the scope, accuracy and

applicability of practices. Data from all available sources are considered in the development

of recommendattons.

The A.G.A. Measurement Committee Reports, covering the vartous phases of gas

measurement, are provided as a source of information and an avenue of convenience to those

writing gas contracts. Also they offer technical guidance to those charged with the responsibility for measuring gas under terms of such contracts. Contracts may be condensed, simplified and repetitious wordage can be avoided to the extent it is possible to employ standard units of

measurement.

Assuming the aim of the gas measurement clause of any gas contract is to provide the

greatest practical accuracy, this end is best served by the technical competence of the gas

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. measurement .specialists employed .by the contracting parties ,·Gas contracts .should 'be written

in a manner which will permit such measurement specialists to best employ the type meter or

meters, auxiliary devices and test equipment available.

The interdependence of the various segments of the natural gas industry gains added

recognition with better communication. In recent years the fuel gas industry has made remark-

able progress toward attaining general agreement in gas measurement practices through the

use of published recommendations of the A.G.A. Measurement Committee. These publications

include the "Gas Measurement Manual ," "Gas Measurement Committee Report #3 on Orifice

Meters," "Manual for the Determination of Supercompressibility Factors for Natural Gas,"

U Report on Recording Charts," "Energy Measurement Report," "Displacement Meter Report,"

and other Reports related to gas measurement and gas quality. These Reports contain obser-

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vations related to the measurement of gas and gas quality via instrumentation types and techniques in common use. In the contract measurement clause, A.G.A. Measurement Committee Reports may be referrf'>C: to individually by title and date of issue and thus be made a part of the contract.

It is the intent of the A.G.A. Measurement Committee that its several Reports collectively provide full information on all normally used methods of measuring high pressure natural gas, as well as on natural gas quality measurements and specifications. The subjects covered include: Orifice Meters, Energy Measurement; Displacement Meters; Other Methods of Measurement, Units of Measurement; Recording Charts; Gas Accounting; Gas Quality Measurements; Measuring and Regulating Station Design; Natural Gas Contract-Measurement and Quality Clauses: Glossary of Gas Measurement and Gas Quality Terms.

The A.G.A. Measurement Committee does not recommend the type or make of meters or instruments to be employed in any instance. It merely provides suggestions to assist the operators to obtain commercial accuracy from the use of the metering systems of their own

--'choice;---

The A.G.A. Measurement Committee Report #3 is specifically provided as a reference covering orifice meter measurement. On the other hand, the manual concerning the determination of Supercompressibility Factors for natural gas, which by reference is made a part of Report #3. is actually applicable in the instance of both orifice meter and displacement meter measurements. The technicians will recognize the displacement meter supercompressibility multiplier as the square of the orifice meter supercompressibility factor. Generally speaking, the technicians responsible for the measurement and computation of gas volumes have available for their use the latestissues of these and other publications of the A.G.A. Measurement Committee, In many companies those responsible for writing the gas contracts are also provided with these publications which are obtainable from A.G.A. Headquarters at a nominal cost.

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It is recommended that the Gas Measurement and Gas Quality Clauses of Contracts be

checked and approved by the responsible Gas Measurement people of each contracting party

and the company legal departments before such contracts are officially Signed. This is for the

purpose of providlng greater assurance that the statements, requirements, and references

concerning measurement and gas quality are accurate, adequate, unencumbered with needless

instructions and completely practical. The measurement man's familiarity with the gas quality

and physical properties will help to assure that inherent characteristics are appropriately

considered and, where applicable, are disposed of in the original prtctng of the gas.

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GAS MEASUREMENT UNITS

The Three Measurement Concepts

It is necessary for parties negotiating gas custody transfer contracts to first determine

whether the gas is "to be accounted for in units of Volume, Energy or Weight. At this time it

appears that most large volume natur-al gas custody transfer measurement takes place on a

Volumetric basis. Howeve r, measurement in Energy and Weight units has more recently been

shown to be equally feasible. The Energy and Weight concepts combine the quantitative and

qualitative parameters of gas measurement into a single unit of measure. As natural gas be-

comes more precious, the parties to gas sales contracts are more generally developing an

awareness of the effect ofthermal energy content on the intrinsic value of gas per unit volume.

This understandably may lead to a wider use of energy and or weight units in large volume high

pressure gas measurement.

Volumetric Measurement

conditions of Pressure and Temperature.

In conunercial measurement of natural gas by volume, the gas is generally accounted for

in units of 1,000 cubic feet, which for brevity is called an Mci. The common multiples of Mcf

used in natural gas volume statics will be recognized as follows:

1 Mcf

1 thousand cu. ft.

1,000 Mcf 1 million cu. ft.

1 MMcf

1,000,000 Mcf 1 billion cu. ft.

1 Bcf

The actual flowing volume of any gas at the pressure and temperature existing in the

meter must be converted into equivalent volume at standard base pressure and temperature.

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Adhering to the English system of measure, gas pressure is expressed in pounds per squa re inch and gas temperature is expressed in degrees Fahrenheit (oF).

Contract base pressure is stated in pounds per square inch absolute, for which the abbreviation is "psia." The contract base temperature is generally expressed in OF because this term is readily recognizable by the layman, while (OF + 460), the equivalent absolute

temperature value known as degrees Rankine, is applied in the equations used in the compu-

tation of gas volumes,

American National Standard Z132.1 - 1969 reads as follows: "The base conditions of

pressure and temperature for use in the volumetric measurement of natural gas shall be 14.73 psia and 600F." (Note: For the information of those who might wonder how thes e base

pressure and temperature values came into being, 14.73 was first used because it is the mean

sea level atmospheriC pressure in the U.S.A. (continental lower 48) expressed in pounds per square inch rounded off to two decimal places, while SOoF was found to approximate the mean

ambient temperature.)

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The Federal Government has adopted the above National Standard pressure and tem-

perature base in all of its dealings concerning natural gas. There is a serious need for those

states which have not done likewise to do so even at the inconvenience of adjusting gas tax rates

to nullify monetary effect. There is also a need for those gas companies which have not adopted

this standard baseto do so for the sake of equitable commodity exchange, and uniform statistics

relative to production and reserves.

Energy Measurement

The Energy Unit is the British thermal unit (Btu), the heat required to raise the temperature of one pound of water one OF at mean sea level USA. Due to the small value of the

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Btu in thermal energy, the "therrn" (100, 000 Btu) and the "dekather-m" (1,000,000 Btu) are

used for commodity transfer in energy units.

The actual number of Btu in a cubic foot of the gas at the specified contract base pres-

sure and temperature conditions depends on the gas composition, where its thermal energy

dimensions are found by calorimetry, fractional analysis or by empirical correlation involving

the gas specific gravity and the contained inert compounds.

The trend appears to be toward the expression of Btu on an assumed dry gas basis as

opposed to the antiquated water saturated basis since currently the actual condition of fuel gas transported to market in high pressure pipelines is essentially dry.

Gas energy measurement by conventional practice is achieved by two unrelated mea-

surements; namely. gas volume metering to ascertain cubic feet of gas at given conditions and

the determination of heat per unit of volume.

Approaches are open to the use of conventional mass and volume mete:!.s for direc;t

energy readout, without secondary measurements in the field of calorimetry. Energy equations

have been designed to take advantage of the phystcal properties of fuel gas, leading to orderly

expression of its energy. Such equations account for non-combustible compounds present in

solution as well as the combustible non-hydrocarbons which may be encountered with manu-

factured gas. The energy equations and other helpful information concerning energy measure-

ment are provided in the A.G.A. Measurement Committee Energy Measurement Report.

In large volume gas measurement the "dekatherm" is the recommended energy billing unit, it being 1,000,000 Btu or one Mcf of 1,000 Btu/cf gas. Units of energy may also be ex-

pressed as megajoules, an international unit, or may be equated in kilowatt hours to facilitate

comparison with electric ene rgy, In contrast to measurement in cubical volume units, energy

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units combine the quantitative and qualitative parameters of gas measurements into a single

unit of measure.

Weight Measurement

The Weight Unit of gas mass measurement is the pound avoirdupois. Measurement in

terms of weight may be accomplished directly with true mass meters or indirectly by the use

of the orifice meter or other inferential devices.

Weight meters and mass meters measure the weight or mass· of a gas, respectively,

without relationship to its cubical volume under any stated conditions of pressure and tempera-

ture. Thus, mass and weight meters function independent of pressure, temperature, specific

gravity, and Boyle's law deviation. (This is not to suggest, however, that mass flow cannot be inferred from information obtainable through the use of volume meters.)

Although most mass measurements are expressed in pounds avoirdupois or pounds

mass, obviously there are not limitations to the use of metric units - kilograms, for instance.

Weight and mass metering, like volume metering, is a quantitative measurement. How-

ever, in the instance of natural gases, freed of inert compounds, Btu per pound of gas is, with-

in practical tolerances, a fixed ratio while Btu per unit volume tends to vary more widely.

It should be appr-eciated that a very slight difference may be found between the pound

mass and the pound avol rdupofs, Where weight units (pound avoirdupois) vary slightly with

gravitational forces, mass units (pound mass) are not noticeably affected by earth's gravity.

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QUALITY OF GAS - DISCUSSION

The typical natural gas transmission company transporting fuel gas for resale gathers its supply wherever it may be found over a wide geographical area from field producers, processing plants and other pipelines. The weighted average composition of the gas supply determines the quality of the composite stream of the natural gas transmission system. With field processing through efficient dehydrators and liquid separators, a major portion of the natural gas discovered will satisfy the practical criteria for fuel gas quality. In regard to those constituents which must be limited as to either maximum or minimum amounts, such limitations must all be specified in the transmission company's gas purchase contracts. The control of fuel gas quality must be vested in the field gas purchase function since it can not be economically performed after the purchased gas is comingled in the transmission stream. Consequently, the quality clause of the natural gas transmission company's gas sales tariff can in turn, with effectiveness, only set up allowable operating tolerances relative to the composition of the established transmission stream.

Commercial quality fuel gas or so-called fuel quality natural gas is that which meets the quality specifications of the applicable gas purchase contract or sales tariff. Although commercial fuel quality natural gas transported by pipelines to the wholesale market is normally a relatively pure commodity, the presence of more or less predictable quanti ties of condensible liquids, diluents and impurities must be anticipated and should be taken into account in establishing allowable tolerances relative to gas quality.

The physical-chemical properties, impurities and conditions on which allowable maximum or minimum values may be necessary are as follows: (1) Water vapor content, which the newest contracts tend to express in pounds per Mef of gas; (2) Carbon dioxide content (C02) 9

expressed as volume percent; (3) Nitrogen content (N2) expressed as volume percent; (4) Condensible hydrocarbons, so-called natural gasoline fraction, expressed in (GPM) gallons per

Mcf of gas; (5) Hyrdogen sulfide (H S), which the newest contracts tend to express in grains per 2

Mcf of gas; (6) Total sulfur, which the newest contracts tend to expr-ess in grains per Me! of

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gas; (7) Oxygen (02) expressed as a volume percent; (8) Other liquids, solids, gums and gum forming constituents; (9) Maximum gas temperature expressed in OF and; (10) Heating value

expressed in Btu per cubic foot of gas.

First of all, fuel gas contract quality specifications must be practical. In estimating

fuel gas contract quality specifications it is advisable to consider how restrictive one can be

without adverse effect on procurement of the needed gas supply, development of gas reserves,

and the competitive price of natural gas in the fuel markets.

Typical natural gas purchased for resale as fuel gas by the transmission companies is

primarily methane. The methane molecule has onlyonecarbon atom; thus, the numerical car-

.... bo.~.~~.~~~Irl~.t~a~~ is ?l' .<:~e.~~~ric~l.~~.~.~~ .~~~o~ .~~~ .. ~e.s~~~ti~e hydrOCarbo~~ is "' dir~. ()

ect relation to their relative molecular weights.) Methane remains in gaseous form under aU

pressure and temperature conditions experienced in natural gas transmission and distribution

pipelines, but it can be reduced to a liquid in a cryogenic environment to produce LNG.

Next to methane in molecular weight is the ethane hydrocarbon compound whose molec-

ule has two carbon atoms, and its numerical carbon tag is C 2'

Typical natural gas also contains varying concentrations of hydrocarbon compounds

heavier than methane and ethane. These include the so-called liquefiable hydrocarbons propane

(C 3) and butane (C 4)' and the yet heavier so-called condensible hydrocarbons conststing of the pentanes (C5) and heavier hydrocarbons.

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When natural gas is produced, the natural gasoline component (CS and heavier hydrocarbons) is often present to some extent disbursed in either a vapor or aerosol state with

the base gas methane and other gaseous compounds.

Since hydrocarbon liquids are valuable as heatingfuel, motor fuel, petrochem feed stock,

etc., the producers of large natural gas volumes often find it profitable to install processing

plants for extracting recoverable liquids before sellingthegas to the pipeline companies. The residue (processed) gas from such plants normally has no more than a negligible liquefiable

hydrocarbon content remaining. and its transportation will not result in the deposit of appre-

ciable amounts of liquids in the transmission lines and distribution systems.

However, it must be remembered that an appreciable portion of the gas made available

to natural gas transmission companies ordinarily comes from small reservoirs where the

quantity of producible gas may be too small for profitable processing for the removal of the

heavier hydrocarbons. With these relatively small quantities of gas, the only processing econ-

omically feasible may be that which takes place when the gas flows through the field separators

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-, .. - _. -' -- -- anddehydrators~- However ; "properly - destgned - fi eld 'separation -equipment dfsUffiCierit - capac! ty

and adequately maintained have proven effective in removing aU free liquids from the flowing

natural gas stream. Under these conditions, the gas and vapor stream delivered to the pipe-

line generally has a low water content; and as for hydrocarbons is, for all practical purposes,

stabilized at the contract pressure, temperature and velocity conditions which exist in the field separators from time to time. Since it appears that average operating conditions in the major

natural gas production area have been such as to provide approximately 0.2 GPM, this value

has by common usage become a criterion in limiting the natural gasoline content by means of

the natural gas purchase contract.

Since such field separator gas constitues an essential portion of the nation's cur-

rently available fuel gas supply, it must be gathered and transported to the ultimate consumers.

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However, any attempt to transport and distribute field separator gas over long distances by

itself can result in the accumulation of appreciable hydrocarbon liquids in the carrier lines as

flowing conditions change. To avoid excessive liquid condensation in transmission and distri-

bution lines, particularly during the cold season, the natural gasoline content of the gas stream

should be as low as possible. Fortunately the natural gas transmission companies have tendered

to them more of the lean processed gas than of the rich field separator gas. The commingling

of the rich gas with the lean gas usually results in a composite t ransmtasfon line gas stream

having a condensible content of less than 0.1 GPM. With a composite stream GPM in this range,

the accumulation of liquids in the main gas transmission lines and distribution system nor-

mally does not exceed an amount which can be routinely removed and disposed of by the re-

spective operators. Studies indicate that in most cases further processing of the large volume

comparatively lean composite gas streams of the transmission companies in an attempt to

avoid the possibility of any liquid condensation in the gas transmission and distribution lines

cannot be economically justified. Currently it appears that such processing could only increase

the cost of the gas to the ultimate consumer. Therefore, for obvious reasons the supplier,

, '" ........ tr'ansmtsaton company "and' distribution . company must each -respectively recognizei ts-own .. re- ()

sponsibility for equipping its systems with the necessary facilitates for the trapping and

disposing of any hydrocarbon condensation which might occur at the pressure, temperature,

and flow conditions likely to occur while the gas is in its custody.

In regard to water vapor content, it has been noted that in most cases the fuel quality

natural gas transported to the wholesale markets by gas transmission companies carries an average water vapor content in the range of .002 to .004 pounds per Mcf. This low water vapor

content is due to the generally high efficiency of the dehydration equipment of the gas suppliers

in the production area. With the flowing conditions experienced in the major natural gas trans-

mission systems in the continental U.S.A. (lower 48), they appear to be susceptible to hydrate

formation at various water contents above .007 pounds/Mcf. Thus, the water vapor content of

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the gas supply gathered by the transmission companies is generally limited by contract to a

maximum of .007 pounds per Mcf or less.

Carbon dioxide (C02) and nitrogen (N2) are two components, often present to some extent in natural gas, that do not burn; thus, they are diluents which have the effect of lowering

the heating value of the gas. In addition, CO2 is corrosive to steel if water is also present: therefore, the gas purchase contracts of natural gas transmission compan,ies usually limit the allowable CO2 content to the lowest practical value under controlling circumstances.

The record indicates that oxygen exceeding an insignificant concentr-attonis not often

present in natural gas produced under positive pressure; however, to guard against unforeseen

developments, the gas purchase contracts of natural gas transmission companies usually in-

elude a limitation as to allowable oxygen content, e.g. 0.2% by volume.

It appears that the sulfur compounds in fuel quality natural gas consist primarily of

hydrogen sulfide (H2S) and mercaptans (RSH) although trace quantities of other sulfur com(-.J__ pounds are sometimes detectablevHydzcgen sulftde (H2S) .is veryco rrostveas _well as toxic. but fortunately in most cases its presence in the natural gas which we have in mind is of in-

significant proportions. To assure continuous surveillance of the H2S content, it is customary for the maximum allowable H2S content to be specified in gas purchase and sales contracts. The maximum allowable content is usually set at a practical value which provides a reason-

able operating tolerance, e.g. 10.0 grains per 1000 ell. ft. of gas. In comparison with the H2S content, the mercaptans and miscellaneous sulfur compounds normally are present in much

smaller concentrations. Nevertheless, to guard against unforeseen increases in sulfur com-

pounds as a whole, the gas purchase contracts and sales tariffs customarily set a practical

limit as to the allowable total sulfur content, e.g. 100 grains per 1.000 cu. ft. of gas.

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CHECKLIST FOR CONTRACT MEASUREMENT CLAUSE

NOTE: Selective use of the optional wordage offered in the following clauses is necessary in order that the peculiarities of each individual contract might be served. Blanks have been left for filling in values agreed upon where they differ from those offered. No contract should be prepared without consulting an attorney.

Measuring Stations:

1. Seller/Buyer shall install, maintain and operate, at Seller's/Buyer's own expense,

at a location mutually agreeable. at or near the point of delivery, the Official Billing Measure-

ment Station which shall consist of a measuring facility and all necessary auxiliary devices as

approved by the representatives of parties hereto.

If orifice meters are used they shall utilize

_____ "Taps" and shall be designed, in-

stalled. maintained and operated, and have volumes computed as may be mutually agreed upon

by the parties in writing. The install ation, operation and maintenance of the auxiliary deVice!:()"

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used in the measurement of the gas shall be as may be mutually agreed upon by the operating

representatives of the parties.

Seller/Buyer shall have access to all such official billing measurement equipment at

reasonable hours, but the calibrating and adjusting thereof and the changing of charts shall be

done by Seller/Buyer.

2. Seller/Buyer may install, maintain and operate, at its own expense and on its own

property, such pressure-volume control regulators, check measuring equipment, instruments,

and telemetering devices as it shall desire. Seller/Buyer hereby grants to Seller/Buyer the

right to install, maintain and operate check measuring instruments and telemeters in and

connected to Seller' a/Buyer s official billing measuring station, provided that such instruments

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and connections shall be so installed as not to interfere with the operation or future revision

of Seller's/Buyer's official billing meters and/or appurtenances, and Seller/Buyer shall io-

demnify and hold Seller/Buyer harmless from liability arising out of the Instal lation; operation, maintenance, and removal of such appendages to the offrcral billing measuring station. Seller / Buyer shall have access to any such check measuring and/or telemetering instruments at 1'6-

sonable hours, but the reading, calibrating and adjusting thereof and the changing of charts

shall be done by Seller/Buyer.

3. Each party shall have the right to be present at the time of any installing, reading.

cleaning, changing, repairing, inspecting, testing, calibrating, or adjusting done in connection

with the other's measuring equipment installed hereunder. The records from such measuring

equipment shall remain the property oftheirowner, but upon request each party will submit to

the other its records and charts, together with calculations therefrom, for inspection and veri-

fication, subject to return within days after receipt thereof.

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4. In the event a billing meter is out of service, or is determined to be registering in(),-,accuratelY, the -volumes-of gas delivered hereuiider during such period or periods shall be

estimated by;

a) using the registration of any approved check meter or meters existing and agreed upon as being accurately registering, or;

b) correcting the error if the quantity or percentage of error is ascertainable by calibration, test, or mathematical calculation or, in the absence of both a), and b), then;

c) relating the quantity of delivery to deliveries during periods under similar conditions when the billing meter was deemed to have been registering accurately.

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5. The accuracy of each party's measuring equipment shall be verified by such party

at reasonable intervals, and, if requested, in the presence of representatives of the other party. but such verification shall not be required as a matter of routing more frequently than ()

once in any thirty (30) day period. In the event either party shall notify the other that it de-

sires a special test of any measuring equipment, the parties shall cooperate to secure a prompt

verification of the accuracy of such equipment, The expense of such special test as may be

requested by either party shall be borne by the party requesting such test if the measuring equipment, by such test, is found to be correct.

6. If, upon test, any billing meter or any related instrument or device the readings of

which are used in the registration, integration, or computation of quantities which affect the

billing hereunder is found to be in error to the extent that it introduces not more than a 2%

measurement error in the individual billing meter or meters affected, previous records of such

equipment shall be considered accurate in computing deliveries hereunder; but such equipment

shall be adjusted at once to function correctly. If, upon test, any such measuring equipment

shall be found to be inaccurate to the extent that it causes the end result measurement of the -~

. . . . . .. '.. ... . ". . . \_J

individual billing meter or meters so affected to be in error by an amount exceeding two per-

cent (2%), at a recording corresponding to the average hourly rate of flow through the in-

dividual billing meter or meters affected, for the period since the last preceding test, then any

previous registration, integration or recordings of such billing meter or meters affected shall

be corrected to zero error for any part of the period since the last test which such error is

known to have existed or which may be agreed upon in actual practice by the operating rep-

resentatives of the parties. In case the period of such error is not known definitely or is not

agreed upon, such correction shall be for a period of one-half (1/2) of the time elapsed since

the date of the last such test, but not exceeding a correction period of sixteen (16) days.

7. Each party shall preserve for a period of at least years all test data, charts

and other similar records applicable hereunder.

16

;~)

Measurements:

1. Computation and or integration of quantities shall be in accordance with standard

industry practice.

2. The sales unit of the gas deliverable hereunder shall be (1) one Mcf of gas, (2) one

pound of gas, or (3) one dekatherm of gas.

3. The (1) Volume (2) Weight or (3) Energy of the gas delivered hereunder shall be de-

termined as follows:

a-l) The unit of Volume for the purpose of measurement shall be one (1) cubic foot of gas at sixty (60) degrees Fahrenheit temperature and at a pressure of 14.73 pounds per square inch absolute.

----

a-2) The unit of Weight for the purpose of measurement shall be one (1) pound mass of gas.

a-3) The unit of Energy for the purpose of measurement shall be one (1) Btu _

b) The average atmospheric pressure at the point of measurement shall be assumed

to be . . . pounds ·per square .inch,irrespective of

actual elevation or location of the point of delivery above sea level or variations in such atmospheric pressure from time to time.

c) If meter or meters requiring flowing gas temperature determination are used the temperature of the gas passing the meters shall be determined by the use of a continuous recording or integrating temperature device or devices installed so as to properly record or integrate into the computations the temperature or the effect of the temperature of the gas folowing through the meters. The arithmetical average of the temperature recorded during periods of gas flow only shall be used when computing gas volumes.

d) If meters requiring the determination of the gas specific gravity are used, the specific gravity of the gas delivered hereunder shall be determined by the continuous use of a recording gravitometer, unless in actual operation the representatives of the parties hereto unanimously agree to the use of an aecumulative gas sampling method, a spot test method, or molecular weights ratio. If a method other than continuous recording of the specific gravity of the gas is used, the specific gravity shall be determined or as much more often as found necessary in practice. The specific gravity determined by any specific test shall be made effective and shall remain in effect until superseded by the next regular or special test.

17

4. Wben an undisputed error of appreciable quantity is found to have occurred in the

computations of any billing gas quantities, equivalent adjustments shall be made to cornpen- i) sate for such error upon request by either party providing such request is made within '-'

____ months after the end of the monthly billing period in which such error occurs.

18

CHECKLIST FOR CONTRACT QUALITY CLAUSE

NOTE: The quality specifications suggested below are most applicable to fuel quality natural gas as procured from various sources at or near the producing fields to be transported by natural gas transmission companies for resale to gas distribution companies, etc.

Selective use of the optional wordage offered in the following clauses is necessary in order that the peculiarities of each individual contract might be served. Blanks have been left for filling in values agreed upon where they differ from those offered. No contract should be prepared without consulting - an attorney.

1. Natural Gas: The gas delivered hereunder shall be natural gas of the quality and

composition produced by nature in the petroleum, oil, and natural gas fields from which

Seller directly or indirectly obtains its supply, with only such processing being required as

may be necessary to condition the gas to meet the quality specifications hereunder.

(~) 2. Heating Value: No natural gas delivered hereunder shall have a "total heating

< _ _t____ ..... --- .... -.---.-- ... - ... - ..• - ...

value" iifPoin"fof tjelivery befow British Thermal Units (Btu) per cubic foot of the

o gas (assumed to be dry) (assumed to be saturated with water vapor) at a temperature 60

Fahrenheit, and under a pressure of (14.73) pal a, The average total heating value of the gas

shall be determined for any billing period by method or methods agreed upon between the

operating representatives in actual practice.

3. Absence of Impurities: Seller recognizes its obligation to provide fuel quality nat-

ural gas containing the least concentrations of separable materials which is economically

feasible:

The gas delivered hereunder:

a) shall be commercially free from duct, gum, gum forming constituents, and liquids at the pressure and temperature at which the gas is delivered.

19

\ I ..»

----~"----~---- .. ----.------ .. --,------'-.-.-- .. -~----------

-~- .. ,-, ... ,- .. -,-.---,.--- .. --- .. -- ... ----.------

b) shall have no more condensible hydrocarbons in free liquid form than that which constitutes a wetting of the pipe walls in the lines On the inlet side of any pressure reducing regulator in the delivery facilities, or in the absence of such,,--) regulator no more such free hydrocarbon liquids shall be present in the piping,_,." at the point of delivery than that which constitutes a mere dampening of the pipe walls.

c) 'shall not contain more than a trace indication of oils and other liquids which are employed in the operation of the seller's gas processing and compression facilities.

d) shall not have a water vapor content in excess of .006 pounds of water

vapor per thousand cubic feet of gas at a base pressure and temperature of (14.73) paia and 60°F. The water vapor should be determined by the use of dew point apparatus approved by the Bureau of Mines or by any other method that is mutually agreeable.

e) shall not contain more than grains of hyrdogen sulfide per 1000 cubic

feet of gas volume as determined by the Tutweiler test or some other quantitative test, mutually agreeable to both parties, after the presence of hydrogen sulfide has been indicated by qualitative test.

f) shall not contain more than 100 grains of total sulfur per 1000 cubic

feet of gas volume, in addition to any sulfur compounds contributed by gas odorants which may have been added to the gas.

g) shall not contain in excess of:

(2.0) %by volume of carbon dioxide; ()

,,·,(0. 2)·,··,·,·,·""-·,···,··%,,by 'volume' of-oxygemor':': ".". , .. ,... . .. " , " ,.,,' , ." ,

(0.2) gallons per Mcf of gas. of those certain liquefiable hydrocarbons

whose molecular weight is equal to or heavier than pentanes, commonly referred to as natrual gasoline, as determined by fraction analysts or some other method mutually agreeable to both parties.

h) shall not have temperature of more than (120) 0 Fahrenheit.

---

4. All measurements of gas required in this Article shall be expressed at a base temperature of sixty degrees (600) Fahrenheit and except as otherwise specifically provided

to the contrary herein shall be at a base pressure of fourteen and seventy-three hundredths

(14.73) pounds per square inch absolute.

5. Odorization: No odorant shall be added to the gas for the specific purpose of this

contract. If Seller for any reason odorizes the gas stream from which the gas hereunder is

20

.,--,------ ... -.--.----- ... ---~---"--- •. ~------

---- .. ----,-.-.-------~----,,-,---

l~)

'-,.-: .. ,-., ..

delivered, such odorization is not to be construed as interfering with the merchantability of

the gas delivered hereunder.

6. Failure to Conform to Specifications: If the gas offered for delivery hereunder shall

fail at any time to conform to any of the quality specifications herein set forth, then Buyer shall

notify Seller of such deficiency and may, at its option, refuse to accept further delivery pending

correction by Seller.

21

---~ ~~~~-~-- -----........-~.-- ~ -~ ----_..~ .....

--- .. ._... ................ -~ ............. ---"--.---.

NOTES

Only those items ordinarily found in the Gas Measurement and Quality Clauses of the

standard form Gas Contract have been named in this Report although other contract items have

a bearing on gas measurement activities. Among such items are the term of the contract;

definition of a contract day, month and year; the point of delivery; the delivery pressure; con-

tract quantity; unit price and billing, etc.

Brevity has been employed in this first edition of the A.G.A. Gas Contract Measurement

and Quality Clause Report to encourage brevity in contract clause language. It is felt that the

national standard base pressure and perhaps other essential items appearing in gas contracts

will eventually be standardized making it possible to relate to the industry a complete set of

accepted specifications in some future edition of this Report.

i'-')'

, .

••••• ,:';:-......:0:

In early considerations relative to the Measurement Committee's plan to add gas con-

tracts to its list of regular published reports, the consensus was that the primary objective of

the intial report should be to serve as a sounding board to aid in refining the technique of 1'e-

porting on this particular subject.

Those who have questions or suggestions should address correspondence to the

Chairman, Measurement Committee, American Gas ASSOCiation, at the address given on the

front page of this publication.

22